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Sunday, August 31, 1997

Discount chain emerges from bankruptcy, to focus on minority shoppers

HOUSTON (AP) -- Two years after it succumbed to heavy debt and fierce competition, Weiner's Stores has emerged from Chapter 11 bankruptcy and stands poised for profitability, the company said.

Weiner's has closed stores, shifted its focus to serving members of the minority community and recruited top managers from outside the Weiner family for the first time in the company's 71-year history.

"We are pleased with the performance of our core group of stores," Vice President Raymond Miller said Friday. "We have focused on neighborhood locations that can and will be competitive in our marketplace."

Weiner's shed 27 money-losing locations, and it will close seven more stores by the end of January. Clearance sales unloaded $40 million worth of old, hard-to-sell merchandise.

To strengthen its now 134 locations, Weiner's remodeled each store.

The company plans to focus on locations catering to a mostly Hispanic and black clientele.

"Our mission is to serve black and Hispanic customers in relatively low-income areas with quality merchandise," said Weiner's President Herbert Douglas.

That mission is a departure for Weiner's, Douglas said.

Weiner's has opened three new stores since declaring bankruptcy, and it will open a fourth in October.

One prime area for expansion, Douglas said, is Dallas-Fort Worth. The company has four stores there now, including two new locations opened earlier this year. In contrast, Weiner's has 45 stores in the Houston area.

One of the oldest retail chains in the city, Weiner's was founded in Houston Isidore Weiner in 1926.

Weiner's, which had $84 million in unsecure debt, filed for bankruptcy protection in April 1995. Making matters worse, the chain had endured a mild winter of slow clothing sales and several seasons of harsh competition from other discounters.

Weiner's rang up about $265 million in sales during fiscal 1996. The company has about 3,400 employees.